NPS (Net Promoter Score): What it is, how to measure it

Measuring customer engagement is essential to understanding whether your strategy is working

Created by business strategist and author Frederick Reichheld, the NPS (Net Promoter Score) metric aims to measure customer engagement and loyalty, and is also useful for measuring the performance of different areas of a company, whether large, medium, or small. 

The NPS metric is focused on the customer relationship. It starts from the question "From 0 to 10 how much would you recommend company X?", and from this question we separate respondents into 3 groups: 

1. Promoters: Grades between 9 and 10
2. Liabilities: Grades between 7 and 8 
3. Detractors: Grades below 6

To arrive at the NPS the calculation is done: Percent of detractors subtracted from the percentage of promoters. Thinking about the result, it is necessary to understand if your company has reached levels of understanding, trust, and loyalty with the customer so that they want to engage the brand. 

What the result of the calculation means: 

• 75 to 100: level of excellence;
• 50 to 74: Quality level;
• 0 to 49: level of improvement;
• -1 to -100: Critical level.

In addition to scores from 0 to 10, it is possible to ask customers to justify their answers, so it is possible to know where the company's shortcomings are in relation to the public. In this way, the metric can be used to understand when word-of-mouth marketing needs to be improved, where it needs to be more present, and how to improve the customer experience. 

By outlining the brand's goals and using NPS, it is possible to use it as an aid to create useful engagement strategies based on the audience's needs and pains. 

Customer Engagement

Engagement is one of the most efficient strategies to achieve loyalty, focusing on creating an emotional relationship with the public. This way, the client becomes a brand advocate and tends to prefer it over the competition.

To learn how to bring this strategy to your company, check out our free e-book "Customer Engagement" by clicking here

About Indico

Indico is a Brazilian Martech company with an experience that has reached more than 150 million customers in 9 countries, that develops solutions to combine Loyalty and Innovation creating unique connections between consumers and brands.

We create solutions that boost relationships and transform results. 

Disruptive campaigns, programs and projects that connect ideas, innovation, data and technology to engage, delight and retain customers. We generate data-driven insights and new opportunities, developing the customer experience with the brand. 

Contact us to find out how we can create more loyalty for your brand and boost your results!

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